Setting up distribution via the Netherlands

The Netherlands represent the ideal import and distribution hub

Numerous foreign companies make use of the Netherlands as a country for importing goods from outside the European Union. No wonder: The Netherlands has been a distribution country for Europe for centuries. The country has one of the largest European airports (Schiphol Amsterdam) and what is by far the largest European seaport (Rotterdam). For many foreign companies the Netherlands represents the import hub par excellence, from which goods can be distributed throughout Europe or transported to the country where you operate.

Benefits of distribution in the Netherlands

Even concerning taxes, the Netherlands has a lot to offer to businesses that import goods. For example, Dutch customs procedures are more automated than those in other countries, which saves time and money. In addition, upon arrival in the Netherlands, the goods can be placed in a customs warehouse, so there is no need to pay customs duties until the goods leave this warehouse. This is an important advantage for the cash flow.

Advantages for foreign companies

Another cash flow advantage can be realised because the VAT due does not have to be paid immediately when the goods are imported, but when payment is due for the periodic VAT return. Our office can advise and guide you in using the Netherlands as an import centre.

VAT advice and VAT representation

We can also assist you in completing tax and VAT returns and with any other correspondence with customs and tax authorities. If you wish to use a customs warehouse, we can put you in contact with a reliable customs broker who is part of our network. If you wish, we can also act as your VAT representative.

Benefits of a fiscal representative

Through appointing a fiscal representative in the Netherlands the following advantages can be achieved:

  • Avoid paying VAT on imports
  • No cumbersome procedure for recovering VAT
  • Achieving a 0% VAT solution in most cases
  • Your VAT obligations in the Netherlands are taken care of by the fiscal represetative
  • No Dutch bank account is required

Avoiding paying VAT on imports

VAT deferment system
One of the main benefits of appointing a Dutch fiscal representative is that it enables the application of the so-called “import deferment system”: precluding the need to pre-finance payable import VAT on the imports of goods from non-EU into Netherlands.

Start doing business as quickly as possible
As soon as your company authorizes us to act as fiscal representative, we will do everything we can to obtain the required registration numbers and permits in the shortest possible amount of time. We aim at enabling your company to start doing business in and from the Netherlands as quickly as possible.

Achieving 0% VAT solution on sales/purchases

VAT warehouse & excise warehouse

Appointing a fiscal representative may also be beneficial for companies that want to purchase certain goods free of VAT, under an excise warehouse regime or a VAT warehouse regime. These conditioned regimes enable the application of the 0% VAT rate on the purchase and sales of goods that are (physically or, more often, non-physically on a license basis) stored within a warehouse.

Other favourable VAT arrangements

  • The possibility to avoid paying VAT on imports through appointment of a VAT
  • Fiscal representative
  • The application of a 0% VAT rate for business to business (B2B) intra-EU supplies of goods
  • Shifting the VAT declaration and payment obligation to the customer for business to business (B2B) intra-EU supplies of services.

Taking care of VAT compliance

When does your company have VAT compliance obligations?

All foreign companies that supply goods or services in the Netherlands, or from the Netherlands to another EU country, will in principle need a Dutch VAT registration. The VAT registration triggers the need to comply with Dutch VAT compliance obligations. Foreign (non-NL-resident) companies may appoint a Dutch fiscal representative in order to take care of their administrative VAT compliance obligations. We are specialized in assisting with and taking care of the administrative VAT obligations of foreign companies.

VAT obligations that we take care of on a standard basis

  • Timely submitting the (monthly or quarterly) VAT return
  • Timely submitting the European Sales Listing
  • Timely submitting the Intrastat return (if applicable)
  • Giving clear instructions regarding the payment of due VAT to the tax authorities, if desired from your regular foreign bank account
  • Acting as your company’s local representative for any required contact with the tax authorities

Further VAT assistance

Assistance that we may provide when required/desired would typically include the practical implementation of:

  • VAT invoice requirements
  • Specific VAT arrangements (for example: imports, exports, intra-EU sales, simplified arrangement for triangular supplies, VAT warehouse, distance sales, One Stop Shop (OSS)
  • Administrative obligations with regard to documenting evidence